NIFTY Options Trading by RAJ

[healthraj]

dear raj,
may be silly but i couldn't resist to ask..... if i want to calculate TREND for intraday, how many days data need to consider.... here in this file he is used more than 80 days data. so is this for intraday or what i really confused.
pls give me some explanation in your answer.

this was explained by raj in some old post.... i hope i remember correctly

For NIFTY

for intraday the higher time frame is kept constant at 60mins

and lower time frame is product of VOLT * HTF that is 15% of 60mins that comes to 9 min

the data in the reviewed sheet is for intraday.

number of rows are to be kept same that is 80 for major trend

and for minor trend its roughly 25 rows


do correct me if i m wrong.


regards

Thanks Ritesh. First of all for Intraday I do not use Daily Charts. For Intraday I use Hourly and a Lower Timeframe. The Lower time frame as explained by Ritesh keeps changing for me depending on the scrip. For NIFTY since the VOLT is around 15%, it comes to 9 minute chart. If the VOLT is 50% then LTF will be 30 minutes.

Why do we need to two time frames? Can one not trade with say Hourly charts. Yes one can trade using only hourly charts and the Minor Trend in Hourly charts. Because the Minor Trend in Hourly charts should align with the Lower time frame.

But I use Lower time frame just to get more granularity and it can give multiple opportunities to BUY and SELL.

The other important thing is to look for BREAKOUT and BREAKDOWN in LTF. Without an LTF we would not be able to identify the strong movements. This is crucial for Options trading to take some quick points in a direction. For example today in NIFTY LTF, the Resistance was at 7660, Breaking 7660 gave a quick profit of 30 points on the UP side.

 

[healthraj]

TREND Calculation

For TREND and Standard deviation calculation one can use a variation of calculations.

Method 1. Simple method is to calculate using the Close price
Method 2. Take average of Trend (Low) and Trend (High)
Method 3. Take average of Trend (Open) and Trend (Close).

I use the 3rd method for my calculations now in my charts.

Also for the Minor Trend, I take the last 30 candles. For Major Trend I take the last 80 candles.

For Intraday I use 60 minutes and LTF.

Daily values should not be used for Creating entry for Intraday trading. They should be used as guiding chart and you will anyway get an Entry in LTF or Hourly charts near the Daily Support or Resistance.

 

[Option.Trader]

LTF as on 04-AUG-14 EOD

Ideal to write 7600PE + 7900 CE @ 120 premium? looks like support being formed at 7600 with fibo also indicating the same

Looks like 7671 from LTF was indicative of initial resistance... pair i had looked in morning is in 20 points profit... maybe writing the call should have been delayed to the resistance?

Raj do you suggest timed ratio writing... like only write puts at support and calls at resistance? your charts do provide a way to approach this, but not sure being so cute will land us in trouble later

 

[baludalal]

Raj sir, I am grateful for your sharing the file. I want to learn brother

 

[healthraj]

Looks like 7671 from LTF was indicative of initial resistance... pair i had looked in morning is in 20 points profit... maybe writing the call should have been delayed to the resistance?

Raj do you suggest timed ratio writing... like only write puts at support and calls at resistance? your charts do provide a way to approach this, but not sure being so cute will land us in trouble later

That would be equivalent to Naked Calls / Puts. So I would not suggest that and It would defeat the whole purpose of Pair trading. Moreover if you are selling pairs and you are getting 20 points in Single day then that is good enough profit.

 

[Rasendra]

Good Morning to Raj Sir,
Volatility and IV, how to take trade as per IV in option ? Which is lowyer, medium and higher IV ? pl. reply whenever your time permit.
Regards.
Rasendra.

 

[healthraj]

Good Morning to Raj Sir,
Volatility and IV, how to take trade as per IV in option ? Which is lowyer, medium and higher IV ? pl. reply whenever your time permit.
Regards.
Rasendra.

VIX range is 13- 14.5 - 15.5. This is VIX and not IV

 

[healthraj]

NIFTY Options

MAX COI @ 7700-7800 - Indicating Bullishness
But there might be a Small Down move. So as per the Options Data it should be a BUY on Dips

The Level to Watch is 7650 and 7716. Above 7720 is BUY. Below 7650 is SELL

 

[timepass]

NIFTY Options

MAX COI @ 7700-7800 - Indicating Bullishness
But there might be a Small Down move. So as per the Options Data it should be a BUY on Dips

Infy is looking strong. What's your SL for your 3400PE ?

 

[healthraj]

AUG-14 Trade-05

INFY Trading above Resistance. Bought 3400 Put @ 43.